Tangible Non-Current Assets

Q1. Utilize the data given underneath. What will be the all out promoted cost concerning new business (Answer in $000)? (FIB)Land $6,000,000Inspection Officer $200,000Architecture Design $100,000Labour Wages $1,200,000Material Cost $2,500,000Administration Cost $400,000Property Tax $300,000Site Overheads $150,00037147528384500$ (2 imprints) Q2. Siva Co took a few credits from the bank toward the beginning of the year 2010 which are as per the following: 6% advance repayable in 2011 of $8m and a 9% advance repayable in 2015 of $18m. A development of a passing resource started on fifth April 2010 with the withdrawal of $3m of assets. On twelfth August 2010, another $4m was pulled back for the passing resource. What will be the promoted acquiring cost toward the year's end 2010? (MCQ) $181,800$216,467$316,467$533,851(2 marks) Q3. Hand-off Co obtained $60,000 to back the development of a shop. Development will start in two years' time. The credit was taken on first January 2001 yet the development started on first March 2001. $13,000 of the advance was unused until first July 2001 and as opposed to keeping it inactive Relay Co contributed the sum with 3% return. The intrigue payable for the organization is at 10% per annum. Figure the cost to be promoted for the year finished on December 2001? (MCQ)$4,800$4,870$5,130$6,000(2 marks) Q4. To work a nearby train the legislature has applied a limitation that in like clockwork the wheels of the train must be supplanted. This substitution will cost $1.9 million. In what capacity should the substitution cost be dealt with? (MCQ)The cost ought to be assumed into benefit ; misfortune account when it is caused The expense ought to be gathered over the two years ; represented the upkeep costThe cost ought to be given ahead of time ; accounted to under the support costCapitalize the expense ; deteriorate it over the two years until next time(2 marks) Q5. Insignificant Co has bought a benefit worth $375,000 on first January 2000 ; its helpful life is expressed at 20 years. A revaluation was occurred on 31st March 2002 where the advantages worth expanded to $390,000. What will be the absolute deterioration charged on the benefit for the year finished 31st December 2002? (MCQ)$4,687$16,479$21,167$23,872(2 marks) Q6. Accenture Co has leased its place of business to outsider on 30th June 2020. The organization utilizes the reasonable valuation model for venture property. Structures unique cost esteemed at $500,000 on first January 2012 ; absolute life were 25 years. A reasonable worth was acquired on the leased day which esteemed the structure at $400,600. At the year-end of 2020, the reasonable estimation of the structure was $850,000. What will be the revaluation gain/misfortune on 31st December 2020? (MCQ)$50,000 (Loss)$70,600 (Gain)$170,00 (Gain)$203,100 (Loss)(2 marks) Q7. Hexcentric initiated a plant on first July 2016. The plant was required to run for a long time until 30th June 2020. After the normal life the plant would be decommissioned and the land will be reestablished near its unique state. The expense of decommissioning was relied upon to be $6 million of every four years. This gauge was determined on first July 2016. To compute the current worth the organization will utilize a 8% markdown rate where the rebate factor for year four is 0.735. Ascertain the all out charge for the cost to be taken into year-end 30th June 2017 benefit ; misfortune account? (MCQ)$352,800$1,102,500$1,455,300$2,088,000(2 marks) Q8. The accompanying explanations identify with revaluation. (HA) The whole class of PPE must be revalued at whatever point a solitary gear in the individual class experiences revaluation TRUE FALSEIf a revaluation model is utilized revaluation must be made routinely to guarantee conveying sum has a material contrast from the reasonable worth TRUE FALSE(2 marks) Q9. Ache Co has bought a property worth $7 million on first January 2013. The land esteemed at $3 million. The structure all out life was 20 years with no lingering esteem. On 31st December 2015, the property was revalued to $9 million where the structure esteemed at $5.184 million. The property was completely sold on 30th December 2017 for $6.5 million. Ascertain the addition/misfortune on removal which will be represented benefit ; misfortune? (MCQ) $1,924,000 (Loss)$3,816,000 (Loss)$4,608,000 (Gain)$2,824,000 (Gain)(2 marks) Q10. Which of the accompanying proclamations are right corresponding to government awards? (MRQ)A government award is perceived in the benefit ; misfortune over an advantages helpful lifeA reimbursement of an administration award got in earlier years is an earlier period adjustmentA promoting guidance from the legislature doesn't comprise under the meaning of government grantThe award got for an advantage must be avoided from the conveying measure of the benefit (2 imprints) Q11. An organization has initiated another plant with the assistance of an administration award of $20,000. The life of the plant is five years. Other than allowing the introduced hardware in the plant cost $90,000. All hardware is deteriorated at 20% per annum on a straight-line premise. Compute the estimation of government award taken into Year 1 current obligation utilizing conceded salary strategy? (MCQ)$4,000$16,000$18,000$20,000(2 marks) Q12. An organization gave credit notes for $200,000 on first January 2008. Around the same time, the organization utilized the cash to purchase a venture property. At the year-end, the reasonable estimation of the property had ascended to $400,000 with a residual existence of ten years. The organization utilizes the reasonable worth model for all properties. Which of the qualities will be accounted in the year's benefit ; misfortune account? (MCQ)Gain $200,000, Depreciation $40,000Gain $0, Depreciation $40,000Gain $200,000, Depreciation $0Gain $200,000, Depreciation $20,000(2 marks) Q13. Zima Co took a few credits from the bank toward the beginning of the year 2015 which are as per the following: 9% advance repayable in 2016 of $11m ; a 13% advance repayable in 2020 of $29m. A development of a passing resource started on fifth April 2015 with the withdrawal of $8m of assets. On twelfth August 2015, another $9m was pulled back for the passing resource. What will be the promoted acquiring cost toward the year's end 2015? (MCQ) $267,750$446,250$714,000$1,160,250(2 marks) Q14. Olay Co obtained $25,000 to back the development of a plant. Development will initiate in two years' time. The credit was taken on first January 2013 yet the development started on first March 2013. $6,000 of the advance was unused until first July 2013 and as opposed to keeping it inactive Olay Co contributed the sum with 7% return. The intrigue payable for the organization is at 15% per annum. Ascertain the cost to be promoted for the year finished on December 2013? (FIB)3613151270000$ (2 imprints) Q15. Plato Co has bought an advantage worth $258,990 on first January 2008 ; its valuable life is expressed at twenty years. A revaluation was occurred on 31st March 2010 where the benefits worth expanded to $310,000. What will be the complete deterioration charged on the advantage for the year finished 31st December 2010 closest to $000? (FIB)3613151270000$ (2 imprints) Q16. Ventura Co has leased one its properties to an outsider on 30th June 2010. The organization utilizes the reasonable valuation model as a speculation property. Property's unique cost esteemed at $800,800 on first January 2002 ; all out life was 50 years. A reasonable worth was gotten on the leased day which esteemed the structure at $750,500. At the year-end of 2010, the reasonable estimation of the structure was $1,150,000. What will be the revaluation gain at 31st December 2010? (FIB)3613151270000$ (2 imprints) Q17. Boric Co opened a machine on first July 2006. The plant was required to run for a long time until 30th June 2010. After the normal life the machine would be decommissioned and the region will be reestablished closest to its unique state. The expense of decommissioning was relied upon to be $3.3 million out of four years. This gauge was determined on first July 2006. To figure the current worth the organization will utilize a 12% rebate rate. Ascertain the absolute charge for the cost to be taken into year-end 30th June 2007 benefit ; misfortune account? (MCQ)$251,856$272,844$524,700$776,556(2 marks) Q18. Bing Co has bought a land ; building worth $12 million on first January 2005. The land esteemed at $4 million. The structures all out life was ten years with no lingering esteem. On 31st December 2007, the land ; building were revalued to $16 million where the land esteemed at $6.75 million. The land ; building was completely sold by 30th December 2009 for $10.5 million. Ascertain the increase/misfortune on removal? (MCQ) $4,472,000 (Loss)$1,600,000 (Loss)$1,028,000 (Gain)$5,600,000 (Gain)(2 marks) Q19. Snazzy Co has opened another manufacturing plant with the assistance of an administration award of $580,600. The life of the plant is fifteen years. Other than conceding the introduced gear in the plant cost $20,400. All gear is deteriorated at 25% per annum on diminishing parity premise. Figure the estimation of government award taken into Year 1 current risk utilizing conceded salary technique? (MCQ)$15,300$20,400$145,150$150,250(2 marks)TANGIBLE NON-CURRENT ASSETS (ANSWERS)Q1. $10,150 Capitalized Cost = 6,000 + 200 + 100 + 1,200 + 2,500 + 150 = $10,150 Q2. CInterest = (8 Ãâ€"6%) = 0.48 + (18 Ãâ€"9%) = 1.62 = 2.1(2.1 à · 26) Ãâ€"100 = 8.08%3,000,000 Ãâ€"8.08% Ãâ€"9/12 = 181,8004,000,000 Ãâ€"8.08% Ãâ€"5/12 = 134,667Total = 181,800 + 134,667 = $316,467 Q3. B60,000 Ãâ€"10% Ãâ€"10/12 = 5,00013,000 Ãâ€"3% Ãâ€"4/12 = (130)Total = 5,000 †130 = $4,870 Q4. DThis is known as upgrading where support, review or any fix is required. It is promoted in the benefit ; devalued over its valuable life for this situation the life of wheels. Q5. CDepreciation till 31st March = (375,000 à · 20) = 18,750 Ãâ€"3/12 = $4,687Years = 20 †2.25 = 17.75 remainingDepreciation till 31st December = (390,000 à · 17.75) = 21,972 Ãâ€"9/12 = $16,479Total = 4,687 + 16,479 = $21,167 Q6. BDepreciation = (500,000 à · 25) Ãâ€"8.5 = 170,000Cost †Depreciation = 500,000 †170,000 = 330,000Revaluation Gain = 400,600 †330,000 = 70,600 Q7. CDepreciation = 6,000,000 �